Soybean meal works great, very high in nitrogen. I had to do a ton of research to find a place that could order it for me. The trick is to look for a farm supply store that orders from Blue Seal. You can enter your zip code and find a store near you that supplies it. If nothing comes up then just call around and see who order from them.

It's too late to seed. You should take a soil sample and send it to your local extension office for analysis. Best $20 bucks you can spent. Based on the result you can come up with a plan of action for the fall. Id also recommend you read Organic Lawn Care on the Cheap. It's high level, but a nice intro into what you should be doing.

Glad you discovered organic, much better for the kids. I think you can have an excellent looking lawn without chemical and even with heavy usage.

Where in the United States are you? Zone 7 tells us nothing except which plants will likely survive a normal winter while soil type and climate is of much more use.
Start with a good reliable soil test. Possibly your state university does that although some no longer do. Prices range from free to homeowners (commercial interests pay) to fairly expensive, depending on what you want tested.
Soil pH and major nutrients, as well as organic matter (humus levels) are what you should be looking for.

From your description that soil lacks adequate amounts of organic matter. You could spread grains (soybeans are
Genetically Engineered and may be unacceptable to an organic grower) or compost and take several years to build up adequate levels of organic matter or you could till in large amounts of compost this spring and get a fairly decent lawn by fall.

Thanks so much for the suggestions. I will work on the soil test soon.
Also I am in charlotte NC area. We have hard clay. And there is absolutely no earthworms in the ground. I have some raised beds and i have been adding a little coffee grounds last couple of months and now i see a few - very few earthworms in them.

So here is my plan - i will spray baby shampoo and molasses a few more times spaced 3-4 weeks apart. Will start with the grains - thanks so much SC777 that is a great link.

I will not re-seed now - may be in late fall ?

I want to spread a little compost - so should i do now ? or a little later in the fall/next spring ?

Thanks so much again. I hope to revive the lawn by next spring :) now i am more hopeful !

Regards
Gmanar.

The only thing the shampoo does is reduce the surface tension of the water so it flows easier. Baby shampoo or any other shampoo od any liquid soap will do the same thing, there simply is no magic in baby shampoo.
Spraying molasses is supposed to stimulate the Soil Food Web, kind of like when your kids eat too much candy, but if there is little organic matter in the soil, and therefore no much SFW activity, there will be no soil bacteria to stimulate so spraying molasses will simply be a waste of time,. energy, and money.
Putting down a grain, such as soybean meal (a genetically engineered product today that may be unacceptable to an organic grower) if some compost is also applied can help increase the amount of organic matter in the soil which will then get the Soil Food Web functioning which will then fe3ed the grass so it can grow in strong and healthy.